NABARD to fund Rs 12.17 billion loan for 300 MW Khavda solar project

The National Bank for Agriculture and Rural Development (NABARD) has received a Letter of Award (LoA) to provide a Rupee Term Loan (RTL) of Rs 12.17 billion for the development of the 300 MW Khavda Solar PV Project – Phase XXI (GUVNL) by Coal India Limited (CIL) in Gujarat.

CIL secured the project in January 2024 at a tariff of Rs 2.55 per kWh under Gujarat Urja Vikas Nigam Limited’s (GUVNL) Phase XXI auction. The tender for the same was issued in July 2023.

A 25-year power purchase agreement (PPA) has been signed between CIL and GUVNL for the sale of power from this project.

The project will be developed on 1,350 acres of land within Phase-I of the 2,375 MW Gujarat Industries Power Company Limited (GIPCL) Renewable Energy Park at the Rann of Kutch, under the GUVNL Phase XXI initiative.

The total project cost is estimated at Rs 15.21 billion. Construction is expected to be completed within 21 months from either the execution date of the PPA or the commissioning of the associated transmission system at Khavda Pooling Station-2 (KPS-2), whichever is earlier.